Samsung unveils thin $2000 Galaxy Z Fold 7 foldable phone as it aims to catch up with Chinese rivals 

“Foldables were a bold move by Samsung to leverage its expertise in flexible display technology and offer a highly differentiated product to compete with Apple,” Ben Wood, chief analyst at CCS Insight, told indianexpress.com on Wednesday. 

Samsung Galaxy Z Fold 7 (left) and Galaxy Z Flip 7. (Image: Anuj Bhatia/The Indian Express)

Wood admits that the foldable phone category hasn’t lived up to expectations. Consumers have questioned whether they actually need a foldable device and have expressed concerns about the durability of these phones.

However, Wood remains hopeful that the new products Samsung launched at its Unpacked summer showcase in New York will help reignite interest in foldables. “With a slimmer, more competitive design, the Galaxy Z Fold 7 could play an important role in driving renewed interest,” he said.

New Samsung phones

The Galaxy Z Fold 7, announced alongside the Galaxy Z Flip 7 and the Galaxy Z Flip 7 FE, flip-style foldables priced at $1,099.99 and $899.99, respectively, is part of Samsung’s long-term vision to be a category leader in foldables. However, the Galaxy Z Fold 7 remains the company’s boldest bet at pushing the smartphone form factor with an extremely thin foldable phone. 

The $2000 Galaxy Z Fold 7, launching worldwide on July 25, opens like a book. (Image: Anuj Bhatia/The Indian Express)

Folding phones, which either open like a book or have a screen that folds in half, gained recognition when Samsung launched its first foldable device in 2019. In recent years, Honor, Oppo, and other Chinese smartphone makers have used slim foldable designs as a key differentiating factor from Samsung. The competition is only increasing, putting pressure on Samsung, one of the world’s largest smartphone manufacturers.

Samsung’s new foldables feature improved designs, better durability, and a host of AI capabilities that could help the company reclaim its position as the leading foldable smartphone maker and boost sales. The entry-level Galaxy Z Flip 7 FE, in particular, could open up a new market for foldables, as some analysts believe it may expand the consumer base in key markets, reaching those who had considered buying a foldable phone in the past but were deterred by the high price.

“Having a device that is the size and weight of a traditional smartphone, but with the added benefit of opening to reveal a large display the size of a mini-tablet, is very compelling,” Wood said, when asked how a phone like the Galaxy Z Fold 7 offers a differentiated experience to users. 

The Galaxy Z Flip 7 and the Galaxy Z Flip 7 FE, flip-style foldables priced at $1,099.99 and $899.99. (Image: Anuj Bhatia/The Indian Express)

“The challenge is that these devices remain extremely expensive, and consumers are still nervous about their durability over long-term use. There needs to be more education to convince consumers that these devices are indeed robust. Over time, they will undoubtedly move further down the price curve, which could make them more attractive to a wider audience.”

Wooing new customers

With the Galaxy Z Fold 7, Samsung is placing its bet on a form factor that has achieved the thinness of traditional smartphones, while offering a tablet-sized inner display for enhanced multitasking and more immersive video consumption.

That may be the biggest differentiating factor between regular smartphones and foldable devices. Samsung Electronics Co is trying to woo a new set of consumers with its foldable phones. Unlike a laptop or tablet, which can perform similar tasks, a foldable slips easily into any pocket that fits a smartphone.

The new foldables test Samsung’s marketing muscle and design prowess in a challenging smartphone market, amid economic uncertainty and tariff headwinds. Samsung is charging an upfront premium for these devices, yielding higher profit margins, but there is still a long road ahead to prove that foldables are the devices people never knew they needed.

Foldables remain a small slice of the overall worldwide smartphone market, with some analysts predicting just a 2 per cent share this year. However, experts say the opportunity for Samsung is significant, particularly in expanding its market share in the premium smartphone segment in key markets like India. 

Samsung is manufacturing its new foldables domestically in India. Apple, Samsung’s biggest rival in the high-end smartphone market, has been notably absent from the foldables space but is rumoured to launch its first folding iPhone sometime next year. 

(The writer is attending the Galaxy Unpacked in New York on the behalf of Samsung India)